<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 9, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Japan to spend 15t yen in next stimulus package
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(TOKYO) Japan may spend about 15 trillion yen (S$228 billion) in its next economic stimulus package, the Nikkei newspaper said, citing ruling Liberal Democratic Party officials.
The package would represent about 3 per cent of gross domestic product, taking total stimulus spending by Prime Minister Taro Aso to 25 trillion yen since he took office in September. Mr Aso this week indicated that he wanted spending of at least 10 trillion yen.
The spending will focus on the job market, credit to companies, energy-efficient technology, support for regions and welfare, Finance Minister Kaoru Yosano said this week.
Bond yields rose yesterday towards the highest since November after Mr Yosano said issuing debt to fund the spending is 'unavoidable'. The yield on the benchmark 10-year bond climbed 2.5 basis points to 1.45 per cent at the close in Tokyo.
The government's ability to revive the economy is constrained by its debt, which is already the world's biggest and is likely to spiral to 197 per cent of gross domestic product next year, according to the Organisation for Economic Cooperation and Development.
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</TD></TR></TBODY></TABLE>The Bank of Japan said yesterday that the world's second-largest economy is deteriorating 'significantly', maintaining its evaluation for a fourth month. BOJ governor Masaaki Shirakawa said on Tuesday that the economy has worsened since January, suggesting a downgrade to its forecasts on April 30.
Corporate bankruptcies rose to a six-year high in March as companies struggled to obtain funds to close books in the final month of the fiscal year, a report showed yesterday.
Some economists say more spending by the government is necessary because the cost of doing nothing may be greater in the long run.
'It is worth asking what might happen without an additional fiscal stimulus,' said Julian Jessop, chief international economist at Capital Economics in London. 'The damage to the Budget deficit from a deeper and more prolonged recession might make the fiscal position even worse.' - Bloomberg
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Japan to spend 15t yen in next stimulus package
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</TD><TD>Feedback</TD></TR></TBODY></TABLE>(TOKYO) Japan may spend about 15 trillion yen (S$228 billion) in its next economic stimulus package, the Nikkei newspaper said, citing ruling Liberal Democratic Party officials.
The package would represent about 3 per cent of gross domestic product, taking total stimulus spending by Prime Minister Taro Aso to 25 trillion yen since he took office in September. Mr Aso this week indicated that he wanted spending of at least 10 trillion yen.
The spending will focus on the job market, credit to companies, energy-efficient technology, support for regions and welfare, Finance Minister Kaoru Yosano said this week.
Bond yields rose yesterday towards the highest since November after Mr Yosano said issuing debt to fund the spending is 'unavoidable'. The yield on the benchmark 10-year bond climbed 2.5 basis points to 1.45 per cent at the close in Tokyo.
The government's ability to revive the economy is constrained by its debt, which is already the world's biggest and is likely to spiral to 197 per cent of gross domestic product next year, according to the Organisation for Economic Cooperation and Development.
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Corporate bankruptcies rose to a six-year high in March as companies struggled to obtain funds to close books in the final month of the fiscal year, a report showed yesterday.
Some economists say more spending by the government is necessary because the cost of doing nothing may be greater in the long run.
'It is worth asking what might happen without an additional fiscal stimulus,' said Julian Jessop, chief international economist at Capital Economics in London. 'The damage to the Budget deficit from a deeper and more prolonged recession might make the fiscal position even worse.' - Bloomberg
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